Valuation & multiples
What is my client base worth?
Financial advice client bases are usually assessed as a multiple of recurring annual revenue. The multiple depends on the type and quality of the book, buyer demand, and how the transaction is structured.
Indicative ranges
Current market ranges.
What we are seeing in the New Zealand market. A starting point for a conversation, not a quote.
Some advisers mean $1m of recurring annual revenue, others a book worth around $1m. On this site the multiples always apply to recurring annual revenue — so a book producing $250,000 of recurring KiwiSaver revenue sits in the $1m – $1.25m range, not the other way round.
Worth being clear about
A “$1m book” means different things to different advisers.
On this site, multiples always apply to recurring annual revenue
Worked examples
How the ranges translate into value.
KiwiSaver book
- Recurring revenue
- $150,000
- Indicative multiple
- 4.0–5.0×
- Indicative value
- $600,000 – $750,000
Life & Health book
- Recurring revenue
- $200,000
- Indicative multiple
- 3.5–4.5×
- Indicative value
- $700,000 – $900,000
Mortgage book
- Recurring trail
- $100,000
- Indicative multiple
- 1.5–2.5×
- Indicative value
- $150,000 – $250,000
These examples are deliberately simplified. Two books with the same recurring revenue can have materially different values.
What drives value
Why do some client bases achieve higher multiples?
The factors buyers actually weigh when they price a book.
Retention and persistency
Strong client retention generally makes recurring revenue more valuable.
Client demographics
Age profile and expected relationship duration can materially affect demand.
Revenue quality
Stable, repeatable recurring revenue is usually more attractive than irregular revenue.
Client concentration
A diversified client base is generally less risky than a book dependent on a small number of relationships.
Adviser dependency
Books that can transfer smoothly to a new adviser can be more attractive.
CRM and data quality
Clean and complete records make due diligence and transition easier.
Revenue growth
Growing books may attract stronger buyer demand.
Provider concentration
Heavy reliance on one provider can affect perceived risk.
Transition support
A seller willing to assist with introductions and transition can improve buyer confidence.
Guides by book type
How each type of book is assessed.
The multiples above are starting points. These guides set out what a buyer actually looks at underneath the recurring revenue in each kind of book.
An appraisal is more useful than a range.
Tell us a little about your client base and we will come back with an indication of value based on your book, not an average one. No fee, no obligation.